Trading Thin Over Holidays
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Stocks/Sectors and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published, the S&P Globex Futures are trading 0.20 points higher and the bond market is trading up 3 ticks.
For the rest of the week, trading will likely be thin as many extend their holiday. Consider this if you decide to trade.
How about those Biotechs [$BTK.X>$BTK.X]? All-time highs again today on the sector. This move looks for real but is in badly need of a correction. With that said, look for stocks in pullbacks, those who have yet to move or wait for corrective action overall before attempting an entry. I’ll keep you posted.
On the Pullbacks List, S1 Corp. [SONE>SONE] in the strong Software [$CWX.X>$CWX.X]/Internet Sector [$DOT.X>$DOT.X], sold off earlier today forming a Trend Knock Out and then reversed to close well. This may have shaken out the weak hands and possibly clears the way for the stock to trade higher. White Pine Software [WPNE>WPNE] is a somewhat similar pattern.
For you breakout players, Nortel [NT>NT], on the Momentum 10 Technology List, broke to new highs on an expansion of range today.
Yessmail.com [YESM>YESM], on the Internet Fab 5, sold off earlier today but reversed to close well (and is also a TKO).
On the short side, PNC Bank Corp. [PNC>PNC], mentioned last night, still looks like it has downside potential. Aspect Telecommunications [ASPT>ASPT], on the Implosion 10 Technology List, is failing at the 50-day moving average from what looks like a big picture topping formation. Dupont Photomask [DPMI>DPMI], also on the Implosion 10 Technology List, looks poised to resume its meltdown as does Tandy Corp. [TAN>TAN], on the Proprietary Implosion List.
BTW, I been meaning to write about how crazy these markets are and use Commerce One [CMRC>CMRC], a stock I mentioned on 12/20/99 as an example, but I think I’ll let it go up another 200 points to really drive home the point (grin).
Best of luck with your trading on Tuesday!
PS – Reminder: Protective stops on every trade!